JSE All Share Index best-performing share in 2018 Amplats reduces debt and increases HEPS.
Anglo American Platinum (Amplats) boasted strong operational and financial results in its 2018 annual results released on Monday.
Despite the growing struggles for mines, Amplats has managed to continue delivering industry-leading returns to shareholders, generating 55 percent total shareholder return. Its headline earnings per share (HEPS) increased by 95 percent to R28.93 per share.
Amplats also increased its free cash flow by 60 percent and reduced net debt by R4.7 billion, turning to a net cash position of R2.9 billion at the end of 2018.
Commenting on the results, Amplats CEO Chris Griffith said that the company has had a “busy year”:
“In another year of strong production from our operations, total Platinum Group Metal (PGM) production increased by 4 percent, with another record production performance from Mogalakwena, as well as record production from Unki and Kroondal.”
Given this performance, and the improving market outlook for platinum group metals, Amplats was the best-performing share on the JSE All Share Index in 2018.
Despite the tragic losses of two workers, Johannes Maimela and Emmanuel Segale, the company’s total recordable case injury-frequency rate improved by 34 percent and the lost-time injury frequency rate improved by 42 percent.
“We have evolved our strategy to deliver the next phase of value to the business, which focuses on three components: firstly, to realise the full value of our operations through our people and innovation, by operating beyond current world benchmark levels of performance; secondly, to invest in our portfolio through fast-payback projects, investing in technology and innovation at our mines, as well as developing studies for expansion projects, particularly at Mogalakwena; and thirdly, to facilitate the development of global markets for PGMs. I expect this series of strategic actions will create considerable additional value from our business, increasing cash flows and returns and reinforcing the sustainability of the company for the benefit of all our stakeholders.”